One Big Beautiful Bill: Tech giants and Live Nation save billions in taxes despite high profits

An OSU accounting professor says it’s too soon to tell whether recent tax cuts have translated into more investment in employees or businesses.

BEND, Ore. (KTVZ) — Alphabet, Amazon, Meta, and Tesla collectively received $51 billion in federal tax breaks in 2025. During the same period, Live Nation paid zero U.S. federal income tax despite reporting $145 million in profits.

These significant tax breaks are attributed to provisions in the "One Big Beautiful Act," a tax law championed by Donald Trump. The legislation includes "bonus depreciation," which allows companies to immediately write off capital investments rather than spreading those deductions over several decades.

The news of these tax breaks was first reported by Matthew Gardner with the Institute on Taxation and Economic Policy. Live Nation did not respond to multiple interview requests and written questions.

Why Live Nation Paid No Federal Income Tax

Live Nation explained its tax status in a 2025 annual report to shareholders saying, "There was no cash paid for United States federal income taxes as we generated a taxable loss for the year ended December 31, 2025, due to the provisions allowed within the One Big Beautiful Bill Act".

One of the company's listed venues is the Hayden Homes Amphitheater, which it books and operates through subsidiaries of The Old Mill. The company also uses these subsidiaries to manage both front and back-of-house operations.

Understanding Bonus Depreciation

Junfang Deng, an accounting professor at Oregon State University who goes by the nickname “Zero,” says these tax savings come down to something called bonus depreciation. "What that means is for any eligible capital expenditures, for example, business use assets, anything that does that has a tax life, less than or equal to 20 years, they can immediately write it off," Deng said.

He noted that before the new law, businesses would have to "slowly depreciate the amount over 20 or 30 years." This bonus depreciation allows firms to take an immediate 100% deduction for assets like machinery, equipment, furniture, and fixtures.

While the tax rule can be used in subsequent years, it applies only to new purchases. Deng clarified that a single asset cannot be written off more than once because it becomes fully depreciated.

"Well, if next year they keep spending more money to buy more qualifying assets, they can do that again," Deng said. However, he noted it is "almost like a one-time deal" because companies "cannot" reuse the same write-offs for the same project or assets.

Changes to Research and Development Deductions

The legislation also modified how companies handle domestic research and development (R&D) expenses. Previously, companies were required to capitalize domestic R&D over five years, writing off one-fifth of the cost annually. Under the current law, Deng noted that firms may be able to claim a 100% deduction immediately, though he observed that specific R&D locations and amounts are not always detailed in shareholder reports.

Trump: Tax Cuts Meant to Boost the Economy

President Trump has advocated for the cuts as a way to boost the American economy and encourage corporate investment. The idea is that companies will use their money to invest back into people and their business.

"Last year, I urged this Congress to begin the mission by passing the largest tax cuts in American history, and our Republican majorities delivered so beautifully," Trump said during the State of the Union address to Congress.

Do Tax Breaks Lead to Job Growth?

Deng expressed interest in whether these savings actually lead to broader economic growth, such as job creation or increased human capital, but says it's too soon to have any concrete conclusions.

"Are they hiring more people? Are they creating more job opportunities nationwide? Are they experiencing or enjoying a higher ROI or return on investment?" Deng said.

Based on his research into previous tax laws, Deng noted that firms sometimes use tax savings for stock buybacks rather than internal investment.

"The literature found that other firms are bringing back the money, but they're repurchasing their own stocks and not reimbursing in human talent and, equipment or productive asset purchases much," Deng said. He added that while firms are "rationally" taking advantage of the law to lower tax bills, it is difficult to determine if the policy is achieving its intended economic stimulation.

What It Means for Everyday Workers

The “One Big Beautiful Bill” also eliminated federal income taxes on tips and overtime pay, allowing workers to keep more of what they earn from extra hours and service-based income.

Under this idea, tipped wages and overtime earnings would no longer be subject to federal taxation, increasing take-home pay for millions of hourly and service industry workers without requiring employers to raise base wages.

For everyday Americans, especially those in restaurants, hospitality, and trade jobs, the immediate effect would likely be larger paychecks and more financial flexibility to cover rising living costs. However, the policy could also reduce federal tax revenue and would offer little benefit to salaried workers who don’t receive tips or overtime, creating a more uneven impact across the workforce.

Live Nation is currently in an Antitrust Trial

The antitrust trial involving Live Nation Entertainment centers on allegations that the company used its dominance in concert promotion and ticketing, through its subsidiary Ticketmaster, to unfairly limit competition.

The case was brought by the U.S. Department of Justice, along with a coalition of state attorneys general, who argue that Live Nation has created a monopoly by pressuring venues to use its services and disadvantaging rival ticketing companies. The lawsuit stems from years of complaints over high ticket prices, lack of competition, and concerns that the company’s control over multiple parts of the live entertainment industry harms both artists and fans.

Previous KTVZ News reporting on locals' issues with Live Nation: